Thursday, April 24. 2008

In my most recent blogs, I’ve argued that marketing per se is not enough for building a brand. Infusing high-profile marketing onto a bland mediocre product or a me-too service is unlikely to shape a powerful, sustainable brand. I’ve argued that if a vendor offers an exceptional value proposition that creates a special customer experience, then and only then will imaginative marketing (and it’s got to be imaginative) truly serve to strengthen and sustain a brand. Case in point: AND1. If that means nothing to you, then you are not a genuine nitty-gritty basketball freak who sweats and fights for the ball under the net. Here’s the deal: Over the past few years, a tiny enterprise called AND1 muscled past giant Nike in the teen and young adult male basketball attire market with a product/marketing mix that was mindblowing and hard to replicate. AND1 is a privately held company that sells its apparel wares in over 125 countries through retailers like Foot Locker and The Finish Line. The company has grown with double and triple digit rates to around $200 million since three twenty-something basketball fanatics launched it in 1993. The whole vibe of the company and the product line reeks of attitude and basketball. The company cranks out ghetto-designer basketball shoes and related paraphernalia like trash-talking basketball T-shirts and bigger baggier basketball shorts, and it does so specifically for people who love to play a no-holds-barred game in gyms and playgrounds. Its philosophy revolves around its name: "AND 1" You get fouled, you score anyway. AND 1! Two points for the basket AND 1 additional free throw. (If you don't know what AND 1 means then don't wear our gear.) While AND1 has attracted a small stable of NBA endorser-players like Stephon Marbury and Latrell Sprewell over the years (conventional marketing), the high-impact imaginative part of its marketing effort has revolved around its breakthrough streetball tours and videotapes. The company scoured the country for phenomenally athletic and flashy urban street basketball players, putting them together for entertaining competitive tours in packed parks and schoolyards throughout the U.S. The extraordinary threatrics and skills of the 15 hitherto unknown players, all anointed with distinct nicknames, and all African Americans except for one little white dude, were captured and sold in DVD format, often given free with shoe purchases, and presented on a regular ESPN “streetball” series. Of course, the players on the tours and videos wear AND1 clothing and the games are like rock concerts that offer customers ancillary opportunities to purchase AND1 product. The whole deal has been a branding sensation—so much so that there’s even a spinoff video game featuring AND1 streetballers. Thanks to these product and marketing efforts, AND1 has a fanatically loyal customer base and a distinct, trash-talking brand. Jay Gilbert, one of the founders, is clear that AND1 is literally a special brand, which means it’s not for everyone, which means it’s not aimed at a general, diffuse public that just wants to dress “cool.” Neither is it aimed at people who play sports other than basketball. (Check out the company website www.AND1.com and you'll notice that it's all about basketball; only one link seems to be about the products). Talk about a targeted business model! As Gilbert says: "In terms of marketing, our message is first and foremost targeted to the hard-core baller. We make what he needs: shirts, shoes, shorts. The end. Our message is all about performance. If you can't play, don't wear our stuff." Unsurprisingly, they do anyway. So what’s the lesson for the rest of us—you know, we who work in less sexy enterprises like insurance companies and auto parts suppliers? The lesson goes right back to how I began this blog: the best branding occurs when a distinctly imaginative product/service/value proposition is coupled with a distinctly imaginative marketing/promotion effort. Both conditions must exist, and the best leaders are unequivocal in insisting on reaching for both those criteria and continually raising the performance and innovation bar for both criteria. Bottom line: If both conditions exist, your brand will flourish. And if you augment the process with a passion for the products and a love for the “game” you’re playing-- like they do at AND1--your brand will rock. Yes, even if you’re selling insurance and auto parts.